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Brazil as a predominant global player of the future Paulo Roberto Costa Downstream Director 1

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DISCLAIMER This presentation may contain forward-looking Cautionary statement for U.S. investors: statements. Such statements reflect only the expectations of the Companys management The United States Securities and Exchange regarding the future conditions of the economy, Commission permits oil and gas companies, the industry, the performance and financial in their filings with the SEC, to disclose results of the Company, among other factors. proved reserves that a company has Such terms as "anticipate", "believe", "expect", demonstrated by actual production or "forecast", "intend", "plan", "project", "seek", conclusive formation tests to be economically "should", along with similar expressions, are and legally viable under existing economic used to identify such statements. These and operating conditions. We use certain predictions evidently involve risks and terms in this presentation, such as uncertainties, whether foreseen or not by the discoveries, that the SEC’s guidelines strictly Company. Consequently, these statements do prohibit us from including in filings with the not represent assurance of future results of the SEC. Company. Therefore, the Companys future results of operations may differ from current expectations, and readers must not base their expectations solely on the information presented herein. The Company is not obliged to update the presentation and forward-looking statements in light of new information or future developments. Amounts informed for the year 2011 and upcoming years are either estimates or targets. 2

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WORLD OIL DEMAND Replacing produc5on with new discoveries will be a major challenge GLOBAL LIQUIDS DEMAND SCENARIO (MM bpd) Projects under Projects under development, development and prospective and new prospective discoveries OPEP Project Project Decline OPEP Decline Non-OPEP • To meet growing world demand while replacing exis4ng produc4on addi4onal capacity of 38 MMbpd will be needed by 2020 • Demand must be met by a combina4on of factors: • New discoveries • Alterna4ves energy sources • Increase of energy eﬃciency Source: WoodMackenzie 4

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BRAZIL LEADERSHIP IN RECENT DISCOVERIES Deep-­‐water discoveries in Brazil represent 1/3 of the worldwide discoveries in the last 5 years New Discoveries 2005-­‐2010 (33,989 million bbl) Deep-­‐Water Discoveries Brazil Other Other Discoveries Deep-Waters • In the last 5 years, more than 50% of the new discoveries (worldwide) were made in deep waters • The development of these reserves will demand addiPonal capacity from the supply chain • Expansion of the oil and gas chain in Brazil is in line with this perspecPve Petrobras expects to double its proved reserves unPl 2020, keeping the discovery cost around US$2/boe Source: PFC Energy 5

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PRODUCTION Petrobras history is to grow produc5on by expanding into new fron5ers Deep and ultra-­‐deep Pre-­‐salt Onshore Shallow water Deep water water 8

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PRODUCTION With broad access to new reserves, Petrobras can more than double its produc5on in the next decade 6,418 3,993 + 35 Systems 2,575 2,772 2,386 2,516 +10 Post-­‐Salt Projects +8 Pre-­‐Salt Projects 4,910 ’000 boe/day +1 Transfer of Rights 845 3,070 Transfer of Rights Added Capacity 13 Oil: 2,300,000 bpd Pre-Salt 1,148 543 • Pre-­‐salt and Transfer of Rights will represent 69% of the addiPonal capacity up to 2020; • Pre-­‐Salt parPcipaPon in the total producPon will enhance from the current 2% to 18% in 2015 and 40.5% in 2020. Note: Does not include Non-­‐Consolidated InternaPonal ProducPon. 9

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A sharp growth in the air transportation industry has been observed in recent years Number of passengers carried - air transportation (thousand) Seats / Km available *p.y. *p.y. * * * * * * * * * * * * It was possible by the increase in the number of people having access to air transportation due to higher income and stronger BRL leading to cheaper flight rates.* Source: ANAC 18

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The diesel demand has also increased sharply… ... not only based on recovery of the industrial ... but also due to agricultural activity growth in activity, ... Brazil over time Index - Industrial Output * * * * * * * * * * * * * * * * * * * The cargo transportation matrix in Brazil is highly dependent upon trucks, with the growth in economic activity boosting diesel demand. 19

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More RestricPve speciﬁcaPon on Diesel brings challenges to lots of players Besides Petrobras, success of a cleaner fuel depends on other stakeholders ANP Distribuitors • Set possible uses for Diesel • Logistics Investiment to transport off-road until the end of 2012. and store different diesel grades PETROBRAS • Replace high sulphur fuel production for cleaner one Engine Manufacturer Retails • Produce engines able to use • Investments at service stations in cleaner diesel (10 ppm) order to manage sales of different diesel grades Petrobras is investing over US$ 12 billion on the next 5 years building treatment units capable of producing a clear diesel and adjusting logistics related to diesel movement. 26

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PRIMARY ENERGY DEMAND BY FUEL TYPE Mundo World 2010* Brasil Brazil 12,975 (MM TEP) 268,4 (MM TEP) Brazil is a leader in the use of renewable sources of energy. At 46%, renewable energy demand in Brazil is more than three times higher than the world average of 14% Source: U.S. Energy Information Administration/2008 (EIA) Source: Ministério de Minas e Energia (MME) 30

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RECENTLY, LOGUM LOGÍSTICA WAS CREATED A Broad Logis5c System For Mul5modal Transport And Storage Of Ethanol LOGUM’s Plan and shareholders 10% 20% 10% 20% 20% 20% Main Features When completed, the system will  1,300 Km of pipelines integrate the main ethanol-producing  Waterway terminals regions in the states of São Paulo,  Total storage capacity: 800 thousand m3 Minas Gerais, Goiás and Mato Grosso  Total flow capacity (2020): 21 million m3 Source: Logum Logística; AB-CR/PP/ICP 34

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EVOLUTION OF ETHANOL AND GASOLINE DEMANDS Demand – Scenario “FdH”Thousand m3 Gasoline C The demand for ethanol has grown much more rapidly than gasoline • CAGR Gasoline C (2000-2011) = 4% Hydrous Ethanol • CAGR Hydrous Ethanol (2000-2011) = 8% Year Participation of the fleet 4,7% Light vehicles The significant growth of the fleet of flex- fuel vehicles associated with the shortage 84,3% of ethanol in the market since early 2010 resulted in the shift in demand from ethanol to gasoline 0,1% 10,8% Year Source: Petrobras Strategy 35

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BIOFUELS SUMMARY • Petrobras’ investments aim to increase local biofuels production as well as implement Brazilian logistics system in order to ensure security of long term energy supply • As the main supplier of ethanol to the local market, the sucroenergy industry in Brazil has an important challenge in the following years. Based on that, this industry should consider new investments in order to supply the huge demand of the domestic market in the medium and long term 36

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FINAL REMARKS • Brazil offers an inspiring set of business opportunities in E&P, Downstream, Biofuels and others. Petrobras will be well positioned in them• The expected increase in Brazilian reserves and production will give a signifficant contribution to the world’s new barrels in this decade• Petrobras will continue to be a relevant offshore player• Brazilian demand keeps with a good growth prospect, requiring refining expansion. Petrobras will keep its’ position as the main supplier• Biofuels will continue to deserve attention and investments in production and logistics systems 37